First ground of appeal
22 Section 51(xxxi) of the Constitution empowers the Federal Parliament to make laws with respect to the acquisition of property on just terms from any State or person for any purpose in respect of which the Parliament has power to make laws.
23 In this case I understand the appellant's case to be that the Federal government, through the respondent, has administratively deprived the appellant of his property by ceasing his compensation payments, is proposing to deprive him of future compensation payments, and thus has acquired his property (being - in the appellant's submission - currently withheld payments and future payments of compensation) on unjust terms.
24 It is unclear to me which law of the Commonwealth is claimed by the appellant to contravene s 51(xxxi) of the Constitution. To the extent that I can understand his case, it is focused on the current and prospective administrative actions of the respondent rather than specific provisions of the SRC Act.
25 In any event however, a fundamental flaw with this argument, as recognised by the primary Judge, is that the appellant has no unequivocal entitlement to payment of compensation by the respondent, such that compensation under the SRC Act constitutes "property" within the meaning of s 51(xxxi) of the Constitution.
26 Relevantly s 14 of the SRC Act provides:
Compensation for injuries
(1) Subject to this Part, Comcare is liable to pay compensation in accordance with this Act in respect of an injury suffered by an employee if the injury results in death, incapacity for work, or impairment.
27 The SRC Act provides a mechanism for assessing entitlement to compensation payments, and makes provision for payment of compensation on a weekly basis where appropriate.
28 This is clear from the terms of s 19(1), (2) and (3) of the SRC Act.
29 Section 19(1) provides that the section applies to an employee who is incapacitated for work as a result of an injury, other than an employee to whom ss 20, 21, 21A or 22 applies.
30 Section 19(2) provides, in substance, that Comcare is liable to pay to such an employee in respect of the injury, for each week that is a maximum rate compensation week during which the employee is incapacitated, an amount of compensation calculated using a specific formula. That formula is referable, inter alia, to the amount per week the employee is able to earn in suitable employment and the employee's normal weekly earnings.
31 Section 19(3) provides, inter alia, that Comcare is liable to pay compensation to the employee, in respect of the injury, for each week during which the employee is incapacitated (other than a week referred to in subs (2)) of an amount calculated using a formula referable to an adjustment percentage where the employee is not employed or partly employed during a particular week.
32 In circumstances where a period of time elapses between an application for compensation and a determination that compensation is payable, it follows that, practically, an applicant would receive a back-payment for compensation payable, being potentially multiples of weekly payments.
33 Section 62 of the SRC Act permits the respondent to reconsider a determination made by it either of its own accord or at the request of the claimant. In particular the section provides:
Reconsideration of determinations
(1) A determining authority may, on its own motion:
(a) reconsider a determination made by it; or
(b) cause such a determination to be reconsidered by a person to whom its power under this section is delegated, being a person other than the person who made, or was involved in the making of, the determination;
whether or not a proceeding has been instituted or completed under this Part in respect of a reviewable decision made in relation to that determination.
(2) A request to a determining authority to reconsider a determination made by it may be made by:
(a) the claimant; or
(b) if the determination affects the Commonwealth--the Commonwealth; or
(c) if the determination affects a Commonwealth authority--that Commonwealth authority.
…
(3) A request for reconsideration of a determination shall:
(a) set out the reasons for the request; and
(b) be given to the determining authority within 30 days after the day on which the determination first came to the notice of the person making the request, or within such further period (if any) as the determining authority, either before or after the expiration of that period, allows.
34 Specifically, a person in respect of whom a determination has been made to discontinue compensation payments, can request reconsideration of that determination within 30 days after the day on which the determination first came to the person's notice. Implicitly, in those circumstances that person would not receive compensation payments during that 30 day period, and potentially for a longer period of time depending on when the determination is reconsidered (and its outcome).
35 In circumstances where, for example, the determination decision is reversed, it follows that an employee would receive a back-dated payment for the period during which compensation has not been paid, being multiples of weekly payments for each week of incapacity.
36 The scheme of the SRC Act is clearly one where:
rights to compensation are wholly the creation of the statute;
such rights are inherently subject to modification or diminution by operation of the statute (including, for example, reconsideration of a determination).
37 The fact that a right is a creature of statute does not of itself mean that it cannot be property. For example, as was explained by the High Court in Attorney-General for the Northern Territory v Chaffey (2007) 231 CLR 561 at [24], a law reducing the content of subsisting statutory exclusive rights such as those of copyright and patent owners would attract the operation of s 51(xxxi) of the Constitution.
38 The position of the appellant in this case however can be summarised by reference to the following observation of Brennan J in Health Insurance Commission v Peverill (1994) 179 CLR 226:
The right so conferred on assignee practitioners is not property: not only because the right is not assignable (though that is indicative of the incapacity of a third party to assume the right) but, more fundamentally, because a right to receive a benefit to be paid by a statutory authority in discharge of a statutory duty is not susceptible of any form of repetitive or continuing enjoyment and cannot be exchanged for or converted into any kind of property. On analysis, such a right is susceptible of enjoyment only at the moment when the duty to pay is discharged. It does not have any degree of permanence or stability.
39 The entitlement of the appellant to compensation in this case is not a permanent or continuing entitlement as he appears to believe - it is subject to review, must be referable to an ongoing injury in accordance with the legislation, is not assignable, cannot be exchanged or converted, and can be terminated.
40 Of particular relevance in this context is the discussion of the High Court in Chaffey. In that case an employee sustained an injury within the meaning of the Work Health Act 1986 (NT) (Work health Act) and accrued statutory compensation rights under that legislation. Similarly to the terms of the SRC Act, the Work Health Act provided that compensation was payable, and calculated by reference to the "normal weekly earnings" of the employee. The Northern Territory Parliament amended the Work Health Act so as to retrospectively define "normal weekly earnings" to exclude superannuation contributions made by an employee after a particular date. A special case was stated concerning the validity of those amendments in light of s 50 of the Northern Territory (Self-Government) Act 1978 (Cth) which provided that the power of the Legislative Assembly of the Northern Territory to make laws did not extend to the making of laws with respect to the acquisition of property other than on just terms.
41 The High Court found that the amendments were valid. At 662 Gleeson CJ, Gummow, Hayne and Crennan JJ accepted the submission of the appellants, namely:
[18] The appellants submit that the critical provisions in the Work Health Act are the stipulations in s 53 that the obligation imposed upon the employer to make payments to the worker or the dependants of the worker is imposed "subject to" and "in accordance with" Pt V and is an obligation to provide "such compensation as is prescribed". These references to Pt V are naturally to be construed as identifying Pt V as amended from time to time. Further, the reference to "such compensation as is prescribed" is naturally construed as a reference to such compensation as is prescribed from time to time. It follows that on the proper construction of Pt V of the Work Health Act the method prescribed for quantification of the amount of compensation payable to a worker by an employer had not been fixed in permanent form at the date of the injury to Mr Chaffey and was always subject to variation.
(footnotes omitted.)
42 At 665 the plurality observed:
[30] The appellants' construction of s 53 of the Work Health Act as it stood at the time of the injury suffered by Mr Chaffey is correct. The consequence is that his rights to compensation under that statute were of a nature which rendered them liable to variation by a provision such as that made by the 2004 Act. Once this nature of the "property" involved is understood it is apparent that there was no "acquisition" spoken of in s 50 of the Self-Government Act.
43 Further, in discussing the impermanency of benefits accorded by the Work Health Act Kirby J also observed at 671:
[49] … Each of the emphasised phrases indicates, from the text of the statute, the impermanency and variability of the entitlement in question, and the necessity to read the statutory compensation "right", as it was provided by law from time to time. The right was, and is, therefore, a "right" inherently susceptible to variation. It follows that a law fulfilling the predicted variation was not a law with respect to the "acquisition" of property, nor was the "right" that was varied "property" that was susceptible to acquisition for "just terms" purposes.
44 The observations of the High Court in Chaffey are also supportive of another conclusion which I consider inevitable in the circumstances of this case (and which points to another flaw in the appellant's argument) namely that the decision of the respondent the subject of the appellant's complaint was not in the nature of an "acquisition" of property within the meaning of s 51(xxxi) of the Constitution. As the appellant's right to receive compensation was, within the meaning of the SRC Act, susceptible to variation or even termination depending on the circumstances of his case, a decision to vary or terminate his compensation payments cannot be considered to be an "acquisition". As Mason CJ , Deane and Gaudron JJ observed in Georgiades v Australian & Overseas Telecommunications Corporation (1994) 179 CLR 297 at 305-306:
Accordingly, "acquisition" in s. 51(xxxi) extends to the extinguishment of a vested cause of action, at least where the extinguishment results in a direct benefit or financial gain (which, of course, includes liability being brought to an end without payment or other satisfaction) and the cause of action is one that arises under the general law. The position may be different in a case involving the extinguishment or modification of a right that has no existence apart from statute. That is because, prima facie at least and in the absence of a recognized legal relationship giving rise to some like right, a right which has no existence apart from statute is one that, of its nature, is susceptible of modification or extinguishment. There is no acquisition of property involved in the modification or extinguishment of a right which has no basis in the general law and which, of its nature, is susceptible to that course. A law which effected the modification or extinguishment of a right of that kind would not have the character of a law with respect to the acquisition of property within s. 51(xxxi) of the Constitution.
(footnotes omitted, emphasis added.)
45 I note that the appellant raised additional constitutional contentions in his written submissions filed 13 July 2015. These arguments were not included in subsequent submissions filed by the appellant, and indeed can only be found at the conclusion of and within the "References" section of the particular submissions. The appellant contends:
(a) First, Parliament has not defined the scope of operation of the SRC Act with sufficient clarity or certainty such that the Act qualifies as a "rule of conduct or a declaration as to power, right or duty" That is to say, whether or not a person is subject to the provisions of the SRC Act is not revealed sufficiently plainly by the combined operation of the Act, the Constitution, and the law expounding's 51 (xxxi) so as to qualify as a "law" within the meaning of s 51.
(b) Secondly, by making the operation of the SRC Act depend on the judicial determination of the scope of a Constitutional provision as to which there may be genuine interpretive choices, Parliament has conferred upon this Court the (legislative) task of creating criminal liability, rather than merely adjudicating its existence. That is to say, Parliament has abdicated its responsibility to mark out the limits of the operation of legislation, and instead has required the Court to undertake that role. In so doing, Parliament has impermissibly vested legislative power in a Chapter III court.
(Errors in original.)
46 In circumstances where these issues do not fall within the scope of the appellant's s 78B notice, and were not put to the Court at the hearing or otherwise than in this fashion, I am not prepared to entertain them.
47 In conclusion, I am satisfied that the decision of his Honour so far as concerned the application of s 51(xxxi) of the Constitution in this case was without error. The first ground of appeal has no merit.